Swipe Smarter: You’re Not Using Your Credit Card To Its Full Potential—Here’s Why

A Note From Robin:

Hello and welcome to Forbes Advisor’s Weekly Brief, where we dive into the realities of consumer finance and empower you with knowledge to help make your financial journey easier.

When’s the last time you really looked at everything your credit card offers? Chances are, it’s been a while. For example, do the rewards still match up with how you spend? Does your card offer any savings incentives you haven’t used, like a free hotel night annually? Do you understand the rates and fees? Like any financial product, regularly reviewing your card attributes is a smart money move. It pays to take a few minutes to reintroduce yourself to your card and make sure you know what’s in your wallet and if it still suits your needs.

In this newsletter, we’ll walk you through:

• How to find your credit card’s interest rate
• How to determine if your current card still matches your needs
• Debt vs. rewards
• Checking for any benefits or perks that can save you money

Best,

Robin Frankel

Staff Writer, Forbes Advisor

Swipe Smarter: You’re Not Using Your Credit Card To Its Full Potential—Here’s Why

If you think credit cards are confusing, you’re not alone. I personally own over a dozen credit cards, write about them for a living and still sometimes get confused about their rewards and benefits programs. Like most personal finance topics, many of us never had a class to teach us the ins and outs of personal finance basics like credit cards, checking accounts and 401(k)s. 

Cards aren’t just confusing for folks who are struggling with debt. Card attributes may also be unclear for those who pay hundreds of dollars a year for premium cards, but don’t understand all the benefits they can access. Owning a financial product and not understanding the details is like owning a car and not knowing how to put on the windshield wipers. It’s an exponentially better experience when you know how everything operates, and not just the main feature.

Here are some housekeeping tips to make sure you’re getting the maximum benefit out of your credit cards:

1. Understand Your Interest Rate 

Americans carried $1.18 trillion in credit card debt at the beginning of this year, according to the Federal Reserve Bank of New York. Even if you have what you consider to be a small balance, credit card interest rates are so high that any amount of debt on a card can quickly balloon into something unmanageable. 

As of February 2025, the average interest rate on credit card plans was just under 22%. That’s a huge number, and many folks—even those with great credit—pay a rate that’s even higher than that. 

When was the last time you checked to see how much your debt costs you? You can find your card’s current APR in your monthly statement that’s either mailed to you or available online. If you typically carry a balance, it’s a good idea to switch to a card with a lower ongoing APR than what you’re currently paying.

Federal legislation, known as Regulation Z, requires all credit cards to clearly state their rates and fees when soliciting you. Additionally, they must show you in exact dollar amounts how solely making the minimum payment each month can affect how much you’ll owe over time.

2. Remember: Debt Cancels Out Rewards

If you’re earning rewards with your credit card, know that the value of any cash back, points or miles is far outweighed by the double-digit interest you accumulate while carrying a balance. 

Even if you make a purchase on a card that offers 10 points per dollar, that’s effectively earning you 10% back on your spending. But with interest rates more than double that, you’d be far better off with a card that has a lower interest rate and doesn’t earn any rewards than the scenario just described. 

Consider a balance transfer card if you need help paying off what you owe. If your debt has become unmanageable, a nonprofit credit counselor is a good place to turn to for advice.

3. If Your Needs Have Changed, Your Card Probably Should, Too

Your credit cards, along with the rest of your financial planning, should grow with you. If your first credit card was a rewards card and you were a college student or new to the workforce, you were likely building your credit and may have qualified only for very basic card options.

If your credit has improved, you can likely qualify for a top card that offers higher rewards in the areas where you spend the most or has some other benefits you can use. 

4. Don’t Forget the Perks

Many credit cards, especially premium rewards cards, come with premium annual fees to match. If you’re paying several hundred dollars a year for a card with perks like lounge access, trusted traveler credits or other money-savers, make sure you enroll in the benefits so you can actually use them. 

I was recently at a hotel with friends and I had a card that offered me elite status with the brand, which meant I got a free food and beverage perk every day. My friend had the same card as me, but she never enrolled in the benefit and had to pay out of pocket for breakfast—a wasted opportunity.

The takeaway? Your credit card is a financial tool that can either harm or help you. The more you understand about how it works, the better off you’ll be financially. It’s worth taking the time to make sure your card works for your needs, just like you ideally do with any other financial product. 

Related Stories: 

• Best Credit Cards Of June 2025 
• How To Track Your Credit Card Points And Miles Earnings
• How Many Credit Cards Should I Have?